MEOH runs into sellers again around 15.17
Methanex Corporation (MEOH) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
MEOH finished Thursday at 13.18 losing $1.29 (-8.91%) on high volume, significantly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MEOH as at Mar 26, 2020):
Thursday's trading range has been $2.82 (19.34%), that's slightly above the last trading month's daily average range of $2.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MEOH.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After having been unable to move above 15.40 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 15.17. The last time this happened on March 20th, MEOH lost -3.82% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 15.40 where further buy stops could get activated. With prices trading close to this year's low at 9.00, downside momentum might speed up should the stock break out to new lows for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Methanex. Out of 705 times, MEOH closed higher 51.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.91% with an average market move of 0.28%.